NIIF invests ₹660 crore in HDFC Capital’s affordable housing projects
analysts, adding with the real estate market evolving, there would be clear demarcation between developers and landlords.
“No one wants to build land banks anymore. Traditional developers are segregating their portfolios for self-development andstrategic partnerships,” said Nishant Kabra, director and head—landanddevelopmentservices (West India), JLL India. Bengaluru- based Unishire Group, which hasn’t launched anything in three years, plans to finish projects in handinthenext 15 months and then evaluate future plans. “Right now, we wantto monetise our land either byselling or through joint developments, so we can fund our ongoing projects and reduce debt,” said managing director Pratik Mehta.
Developers like Nirmal Ltd and Peninsula Land Ltd are focusingondevelopingsomeland parcels on their own while partnering with other developers for larger plots.
Nirmalhascreated aseparate unit called Nirmal Ventures to partner with bigger builders like GodrejProperties Ltd, Shapoorji Pallonji Real Estate and L&T Realty to develop their land parcels in Mumbai. Peninsula Land has sold most of its non-core assets. It has sold land in Pune MUMBAI: The National Investment and Infrastructure Fund (NIIF) of India on Tuesday said it has invested ₹660 crore in HDFC Capital Affordable Real Estate–2 (HCARE 2), a fund managed by HDFC Capital Advisors. This marksthesecond investment for NIIF’s Fund of Funds and will see NIIF join a unit of the Abu Dhabi Investment Authority (ADIA) as an investor in HCARE 2. knowledgeable investors. This investment enables investors in the NIIF Fund of Funds to participate in the attractive mid income and affordable housing sector in India,” said Sujoy Bose, managing director and chief executive of NIIF.
HDFCCapitalAdvisors, aunit of Housing Development Finance Corp Ltd, provides investment management services for real estate private equity financing. It advises HDFC Capital Affordable Real Estate Fund 1 (HCARE 1) and HCARE 2.
Collectively, HCARE 1 and HCARE 2 form a $ 1.1 billion investment platform targeting affordable and mid-income residential projects in 20 big cities in India. The funds provide long term, equity and mezzanine capital to marque developers at the land and pre-approval stage for the development of affordable and mid- income housing in India.
“The current lack of flexible, long-term capital is one of the keychallenges facing developers of affordable and mid-income housing in India. This fund will help address the demand-supply gap in affordable housing and will ensure that flexible financing is provided to quality developers,” said Deepak Parekh, chairman of Housing Finance Development Corp. Ltd (HDFC).
NIIF’s Fund of Funds had previously invested £120 million (around ₹1,163 crore) in Green Growth Equity Fund (GGEF), which will invest in renewable energy and other green businesses. GGEF aims to raise £500 million for the fund, which is managedbyEverSourceCapital, a joint venture of home-grown private equity firm Everstone Group and Lightsource BP.
The government had set up the NIIF in 2015 as an investment vehicle for funding commercially viable greenfield, brownfield and stalled infrastructure projects. The government is investing 49% and the rest of the corpus is to be raised from thirdparty investors, such as sovereign wealth funds, insurance andpensionfunds, endowments.
NIIF’s mandate includes investing in areas such as energy, transportation, housing, water, waste management and other infrastructure-related sectors in India.
In January, NIIF and Dubaibased port operator DP World announced the creation of an investment platform—Hindustan Infralog—to invest in ports, terminals, transportation and logistics businesses in India. The platform will invest up to $3 billion of equity to acquire assets anddevelop projects in these sectors.
Some developers have avoided new launches for years